Georgia Real Estate Market: When will My Home Value Return?

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Georgia Real Estate Market: When will Home Values Return?

Georgia home values seem to be going nowhere but down. In fact, a recently released report by Georgia Watch shows that declining home values will cost Georgia homeowners nearly $13 billion in property values over the next two years.

The Fiserv Case-Shiller Analysis shows home values finally returning between 2013 and 2014 in Georgia. In the meantime, you are going to have to ride out the storm when it comes to your home value.

Record Number of Foreclosures

The steep decline in home values is no doubt directly related to the record number of foreclosures in Georgia. Georgia Watch calls this decline in home values a “spillover” from the foreclosure crisis.

According to Georgia Watch, nearly two million Georgia homeowners saw the value of their home decreasing by an average of $1,920. It is expected that, by 2012, another one million homes across Georgia will lose value as well. The average drop in home prices by 2012 is expected to reach $4,657.

If you are a homeowner, this certainly is not good news. If you are thinking of refinancing, a drop in your home value may inhibit you from doing so. If you are a homebuyer, however, these drops in home values may mean a golden opportunity for you.

When speaking of Georgia, the foreclosure crisis has hit particularly hard. It is important to point out that in addition to homeowners’ woes, many local governments will struggle as their tax base shrinks. Some of the solutions to this shrinking tax base have been limiting fire department personnel and garbage collection days, just to name a few.

Increasing Home Sales

Amidst the decline in home values, however, are the steadily increasing home sales. Homes in Northwest Georgia experienced a 2.8 increase in sales in May alone, compared with April, and a near 29 percent increase form the same time a year ago.

Many economists were unsure of home sales after the homebuyer tax credit expired, but recent sales have proven that the expiration of the tax credit was not enough to curb sales in Georgia. Although many real estate experts don’t consider these numbers to be “growth,” but instead “recovery,” it still is a bright light when considering the effect that the recession has had over Georgia for the past 30 to 40 months.

Overall, Georgia continues to see signs of hope. Although home values aren’t expected to return until 2013 to 2014, home sales continue at a brisk pace, which will further help the recovery of home values in Georgia.